Customer loyalty subscription programs are an effective strategy for getting customers to return to your business and even recommend it to family and friends. These rewards can include special incentives to regular consumers that help market your business to potential customers when deciding between you and a competitor.
However, earning and keeping a customer’s loyalty are different things, especially with the ever-changing digital advancements. Loyal customers expect rewards that align with your business’s vision and for you to maintain the quality of your products and services with every interaction and experience. At first, this can be challenging to manage, so you need to develop the right loyalty program to monetize your user base.
Why B2C Companies Need to Develop Loyalty Rewards Programs
Like all business initiatives, a one-size-fits-all approach won’t work for your loyalty reward program. If your loyalty program fails to reflect what’s truly important to your customers, you run the risk of creating a disconnect and losing their business. It’s important to develop a loyalty reward program that fits your brand and feels authentic.
Here are four reasons to develop and implement a customer loyalty subscription program:
- Loyal customers have a high ROI: Customer acquisition is five times more expensive than customer retention. Loyal customers are already familiar with your business and are willing to spend more. While gaining new customers is essential for growth, retaining high-value customers is important for driving sales.
- Repeat customers lead the way to new customers: Maintaining excellent standards is a great way to get satisfied customers to spread the word about your business and attract new customers. Many people rely on personal recommendations and reviews before engaging with a business, and your loyalty program can ensure your repeat customers advocate for your brand.
- Reward programs build connections: Loyalty programs facilitate emotional connections between your brand and a customer through repeat behavior. Partnering your program with lifestyle incentives and personalization — such as birthday rewards and access to third-party promotions at restaurants and retailers — creates a sense of community for your customer.
- Loyalty programs can provide customer insights: Loyalty programs are designed with both the customer and brand in mind. A digitalized reward program acts as a form of research and allows you to develop innovative and effective strategies based on real-time data about how your customers interact with your business.
These critical aspects are backed up by research that shows customers who are part of a loyalty program are 80% more likely to choose that brand over competitors, as well as:
- Pay higher prices to stay with the brand
- Recommend the brand to others
- Increase their frequency of purchases
With this information, it’s safe to say that improving the customer experience with loyalty programs can provide significant long-term benefits.
Loyalty Frameworks That Work for Consumer-Based Firms
As businesses shift to keep up with new technology, customers will certainly expect more from reward and loyalty programs. Here are the most important aspects to focus on when implementing a loyalty framework in your institution.
Creating rewards programs that feel personalized to your customers makes them feel special and valued. You can find ways to gather data on your members and see what suits their interests by offering quizzes or surveys that show you what they like about your service or product and what you can do to make it even better.
Consider that not all of your consumers are the same, so they won’t have the same tastes and interests. This means that you have room to expand your program and give them options to choose rewards that satisfy their needs. Through this process, you will learn more about your customers’ purchase behaviors, which will allow you to keep customers happy.
Your program, along with your products or services, should be original but also innovative. Innovation is an important key to success because it will help you stand out from your competitors and display a distinct brand identity among so many other reward programs that your consumers are already exposed to. Offering unique experiences, such as early access to new products or allowing members to vote on your next product, will make them feel that your business is continually looking for new ways to improve.
To keep your program in line with consumer needs, consider what you would want as a reward. Subscription loyalty programs that provide convenience incentives are an excellent way to keep customers coming back because it makes the process easier, simpler, and faster for them to obtain your product or service.
For example, you can make the process for signing up for your rewards program quick and easy — a simple but important way to improve customer retention. As a best practice, you want to provide rewards that excite customers but also align with your business goals, and convenience simply makes a customer more inclined to join because they know it won’t feel like a hassle.
Regardless of the framework you choose, your loyalty program will not seem worth it to customers if it has no perceived value. Your rewards need to be relevant and engaging for customers of all different backgrounds, and they need to display that your program will be worth your customers’ time and money. Here are a few ways you can exhibit your program’s value from the beginning:
- Provide offers and discounts
- Give advanced access to new products
- Design point-based systems for gifts and purchases
- Create exclusive sales
- Offer cash rewards
You can also introduce high-incentive programs like merchant funded card-linked rewards for cardholders to automatically earn rewards from popular merchants by swiping their affiliated debit cards.
How to Make Your Subscription Loyalty Program Irresistible
Once you’ve decided on the loyalty program that fits your needs and engages your customers, you can fine-tune your features for even more customization that sets you apart from competitors. Your customers are unique and they deserve a reward system that feels personalized and flexible when remaining loyal to your products or services. Here are some of the top ways to make your loyalty program stand out among the rest.
1. Provide Multiple Ways to Earn Rewards
Ensuring that your members have multiple methods of earning rewards is a strong motivator for them to continue their membership. You can provide offers, discounts, and any incentives that work for you, but also consider a point-based system because they accrue each time a customer makes a purchase.
As they see the points go up, they will want to remain in the program to obtain the reward of purchasing an item with those points. When you combine various methods in your program, it becomes more valuable to consumers who may have different needs.
2. Offer Unique Benefits
In addition to offering multiple ways to gain rewards, determine what benefits your subscribers want to see and provide a range of rewards for their loyalty. Valuable and unique benefits could include convenience incentives or benefits that they can redeem with retail brands. This method encourages loyalty and, in time, advocacy and referrals to your business.
3. Develop Mobile Connections
Many businesses are gaining around 42% of their online sales from mobile devices, so your reward program should be compatible with such devices. You can create an app for your loyalty program that allows customers to stay in touch with your business wherever they are and see new content about your products and services.
Allowing customers to access their points, offers, and other loyalty incentives from their smartphone, laptop, or tablet helps them stay connected and lets them easily engage with and promote your brand with the click of a button. You can also reward your subscribers for engaging on your social platforms or sharing your content, which is a cost-effective way to advertise your company brand and build your customer base.
4. Encourage Customers to Leave Reviews and Feedback
Social engagement is another excellent way to expand your customer reach. When loyal customers post, share, or promote your business, it raises awareness of your brand and strengthens your reliability and reputation with potential customers. You can offer special rewards for your program members who leave reviews on your website, social media accounts, or any platform you see fit.
You should also encourage feedback from loyalty program members to better understand their needs and preferences and adjust according to their comments so they feel they are being heard and valued.
Automate Rewards and Loyalty Programs With Hydrogen
Getting your customers to maintain loyalty to your business is essential for driving sales and keeping you competitive within your industry. Creating subscription loyalty programs that make consumers feel valued is the first step. You will have full control over your loyalty and rewards programs with Hydrogen. Our infrastructure allows you to accelerate your products and services to the market with components focused on financial products fit for your organization’s needs.
Hydrogen lets you create your own custom loyalty and rewards programs and use our engine to automatically calculate and disburse the payments. Sign up today or contact us to learn more about embedding financial services into your company.